Odaily Planet Daily News: The U.S. SEC's lawsuit against Tron founder Justin Sun suffered a setback in the ruling of a New York district judge, who is trying to dismiss the lawsuit against him. On August 19, U.S. District Court Judge Edgardo Ramos denied one of the main arguments of the SEC's lawsuit, which the defendants have been using to dismiss the SEC's lawsuit. The SEC accused Justin Sun and the Tron Foundation of participating in "unregistered offers and sales, manipulating transactions and illegally selling crypto asset securities" of Tron and BitTorrent (BTT) tokens in March 2023. The defendants asked to dismiss the lawsuit in April, saying that the SEC had no jurisdiction over "foreign digital assets offered to foreign buyers on a global platform." They made an argument in their brief reply: the "common enterprise" part of the Howey test. The SEC tried to fight back, claiming in a letter on August 12 that this was a "new argument," asking the judge to either not consider Sun's motion to dismiss or force them to file a "response" to address the new argument. It argued that the defendants initially challenged only two parts of the Howey test (capital investment and profit expectations), not the common enterprise element. On August 19, Judge Ramos sided with the defendants, finding that no new arguments were raised, and "given that the defendants admitted that they did not challenge the 'common enterprise' element of the Howey test, the SEC's letter motion opposing untimely arguments or permission to file a written response is denied." The case against Sun and his affiliates will continue. One of Sun's main arguments is that "the U.S. SEC is not a global regulator" and that it "goes too far" in its efforts to apply U.S. security laws to "primarily foreign conduct." It also said that the tokens were sold "entirely overseas" and took steps to avoid the U.S. market, and that the SEC did not claim that they were "initially offered or sold to any U.S. residents." (Cointelegraph)

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